2023-07-24 09:28:20 ET
- Heron Therapeutics ( NASDAQ: HRTX ) rose ~5% Monday pre-market after the biotechnology company said that it has reduced its employees by ~25% as part of a cost reduction plan and corporate restructuring, and is launching an ~$30M private placement financing.
- Heron Therapeutics said its cost reduction and corporate restructuring is expected to result in cash savings of ~$75M through 2025.
- Also, the restructuring is expected to result in non-recurring cash expenses of ~$5.9M in 2023.
- Also, the company has entered into a securities purchase agreement to sell 20.7M shares in a private placement to institutional investors at $1.37 per share.
- The company will also issue to certain investors, in lieu of shares, pre-funded warrants to purchase up to 1.2M shares at $1.3699 per pre-funded warrant.
- The investor group is led by existing investor Rubric Capital Management.
- The private placement is expected to close on or about July 25.
- The net proceeds are intended to be used for working capital and general corporate purposes.
- Source: Press Release
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Heron Therapeutics rises on layoffs, ~$30M private placement financing